In a major relief for railway employees and pensioners, Indian Railways has issued a notification increasing Dearness Allowance (DA) and Dearness Relief (DR) in line with the recommendations of the Seventh Pay Commission and the decision of the Union Cabinet.

The Railway Board on Tuesday announced that the revised DA and DR rates will come into effect from January 1, 2026.

As per the notification, the DA and DR rates have been increased from 58 per cent to 60 per cent of the basic salary and pension.

The move follows last month’s decision by the Cabinet led by Prime Minister Narendra Modi to approve a 2 per cent increase in DA and DR for central government employees and pensioners.

The revised rates will benefit serving railway employees, retired railway staff, and family pensioners across the country.

The hike is part of the Centre’s implementation of the Seventh Pay Commission recommendations aimed at offsetting inflation and rising living costs.

Meanwhile, the latest announcement has once again brought focus on the DA disparity between the Centre and the Government of West Bengal employees. State government employees in West Bengal currently receive 22 per cent DA.

Earlier this year, the Bengal government had announced a 4 per cent increase in DA in its interim budget.

At that time, the difference between the Centre’s and the state’s DA rates stood at 36 per cent. Following the latest hike by the Centre, the gap has now widened further to 38 per cent.